Nvidia company strategy

Document Type:Research Paper

Subject Area:Business

Document 1

More recently, the company has joined the mobile computing market. They are producing Tegra mobile processors for tablets and smartphones. The competitors of NVIDIA include the following: Qualcomm, Intel, and Arm. This paper will present an analysis of NVIDIA Corporation including its marketing strategies, internal and external environment, and other factors affecting its performance. NVIDIA is a company in the technology industry and the trends in this industry include the following: internet of things (IoT) - according to a report that was prepared by BI Intelligence, companies in the technology industry are investing their resources in the internet of things. Many of the world’s largest companies are investing their resources into developing augmented-reality experiences and these experiences are responsible for enhancing the experiences of users both outside and inside their stores.

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Analysis Using Porter's Five Forces The threat of New Entrants- the entrance of new companies into the technology industry is very low as a result of high costs. Intellectual property is also protected in the technology industry and this makes it hard for new companies to compete with already existing ones. Therefore, the concern for new companies is reserved for organizations with enough capital. Large technology companies such as NVIDIA will stay in their primary market. The bargaining power of customers is based on the following factors: substitute availability, switching costs, and backward integration of customers. The high switching costs prevent customers from shifting from one company to another. It, therefore, weakens the bargaining power of buyers. However, the availability of substitutes will increase the movement of customers from one company to another in search of more satisfying products.

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Customers are rational in nature and they will prefer products whose value is more than the cost. However, international expansion needs thorough planning. Managers and leaders should conduct research to determine whether the expansion will have a positive impact on the company. Companies should never underestimate the cost of expanding overseas especially if the new markets are unfamiliar to them and the business practices are completely new. For technology companies such as NVIDIA, a slight mistake in an international market can jeopardize entire operations. Organizations embark on expanding operations to international markets for the following reasons: to increase customer base and market share, to improve the cost-effectiveness of the economic activities, and to follow global customers. The company is likely to succeed in Sweden because of the stable economy, user-friendly bureaucracy, skilled and educated workforce, and lastly, the country is a pioneer in consumer trends and new technologies (Shields, 2017).

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In addition, Sweden is an export-oriented economy and this is responsible for its rapid growth. The unemployment rate is too low. Sociocultural factors The cultural and social factors affecting business in Sweden include the following: dominant religions, age and lifespan demographics, cultural views towards leisure time, and language barriers. The country has unique beliefs, traditions, and cultures and this may affect the performance of the company. Reports on Global Value Chain Development are majorly used by policymakers to understand the increasing complexity of global trade and to formulate effective policies that can make GVCs more inclusive (Elms & Low, 2013). Conclusion NVIDIA Corporation is associated with IT and Technology industry since it produces and distributes consumer electronics and semiconductors. It is an American company whose competitive advantage is high.

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Regardless of its high competitive advantage, the company faces competition from Qualcomm, Intel, Marvell Technology, and AMD. NVIDIA has a number of products in its kit that meet the needs of its different customers. Political factors that favor international trade in the country include freedom of expression and democracy. However, the tax rate is slightly high and this reduces the performance of companies since the price of products will be high. Lastly, cultural factors such as beliefs, traditions, and language have a negative impact on business. My recommendation is that NVIDIA Corporation should move forward and expand its operations to Sweden. This is because the environment will enhance success and growth. Retrieved from https://www. gov. uk/government/publications/overseas-business-risk-sweden/overseas-business-risk-sweden Meyer, K.

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